AMONG THE REVOLUTIONALY CHANGES THAT SHOULD TAKE PLACE IN UGANDA IS AN ELECTORAL COMMISSION WHICH PEOPLE UNDERSTAND

We are fed up of professionals who act unprofessionally. Mr. Kiggundu Sir, thank you where you have been able to deliver, but the reading is clear on the wall, the people of Uganda are fed up of President Museveni's dictatorship prevailing over the will of the people. As a man expected to have principles given your education attainment, can you do the will of the people of Uganda? The people have made proposals for the composition of the Electoral Commission, what is it that dues you on to that chair?
William Kituuka Kiwanuka

I WILL BE THE CHAIRMAN ELECTORAL COMMISSION COME 2016, SAYS KIGGUNDU.

Electoral Commission boss Kiggundu
Posted Sunday, March 27 2011 at 00:00
In Summary

Electoral Commission Chairman Badru Kiggundu has dared his critics, saying despite charges of bias labelled on him, he will preside over the next national elections in 2016. Dr Kiggundu, the man who has been at the helm of elections in Uganda since the start of multi-party elections, has been accused of being biased by opposition politicians and some civil society organisations. “I will absolutely be here to conduct the elections,” he said.
Speaking exclusively for the first time to Sunday Monitor since the polls ended, Dr Kiggundu said he had received numerous calls from within Uganda and outside praising him for the work well done.“You will be amazed if I tell you how many people have called me saying this was a fabulous work I did,” he said. Ugandans expect another general poll in 2016, and he vowed to be at the EC as chairman. “My term ends November 17, 2016. And God willing, by virtue of my mandate I will be here to conduct the third elections,” he said. He also said he knows by the time of the 2016 polls, some of his haters would have become converted and will like him. His revelation will not be good news to opposition critics who have called for his removal, with some moving around the country seeking signatures of Ugandans to petition his exit as EC boss. Others have done demonstrations to ‘remove a biased EC’.
Uganda has just completed an election season for all political electoral positions right upto the grassroot. Sunday Monitor’s Sheila Naturinda talked to the Electoral Commission Chiarman Badru Kiggundu about the election process, challenges, opportunities and the future. Excerpts;
What was your ideal day like during the elections?
Every day has its own uniqueness and I may not go through the whole story but surely as you get closer to the D-day, you can’t refrain from being apprehensive and asking yourself questions whether you have done everything as planned. Will there be some hiccups and what do I do if there are there and what type would they be? You can’t be too sure about anything in life until the actual hour arrives. With elections, until like midday at least you can take some breather but it’s always part of success. If you want to succeed you must be nervous.
Any specific challenges that troubled you?
The delivery of materials in Kampala to be a few hours late shocked me because we had done well in terms of planning but how it ended up that materials would reach Kampala as late as 10am I am still shocked by it.
Any one to blame?
I don’t blame anybody because this is a multi-faceted task. You have trucks leaving at the same time but the one at the front is the one that reaches late. That has its own backflow effect and there are so many variables. So I can’t put it on one person because the task of elections isn’t a single-handed responsibility. You could reach a polling station and the officials aren’t there. You planned for the best but the practical reality turns out to be the worst. But I appreciate the voters because they were very anxious to vote and those who mattered waited.
You are the first in Uganda’s history to lead the EC over two elections. What makes you a darling of the appointing authority?
If you believe in what the Baganda say “buli mulembe ne bya gwo” (every generation cycle has its own characteristics) maybe …well, it’s a challenge for me to make that assessment about the darlingness in me. I can, however, say I have a sense of commitment to the task and I do read quite a bit and try to understand although I am not saying my predecessors didn’t.
But I am fully committed to my job. I work long hours and I try as much as possible to understand everybody I work with and even those from outside the commission because everybody has a different perception. I try not to make issues personal. I am grateful that the government in its various branches trusted and re-appointed us as a commission. It is an achievement because no other commission has had it and we shall try to fulfill our obligations.
What is your general assessment of the just concluded elections?
I want to claim that this poll has been better than the 2006 poll. I usually hesitate to say it has been free and fair but I can add my voice that it was free and fair. That this election was more peaceful, had more enhanced cooperation from various stakeholders, the security environment was good and I want to salute my colleagues in security who have thoroughly worked with us to ensure the environment meets the prescription of the law.
Opposition politicians think your ears are chocked to the ruling party only. Are you guilty of that accusation?
No, because what they call me isn’t what I am. You can describe me as you see me but deep in my heart I am doing my obligation and as long as I meet those obligations, calls can continue flooding in but I will continue until the appointing authority says stop.
Ever received phone calls threatening you?
Well of course, I have got calls and even what I read in the media is too much but those are all calls from people who actually don’t know who Kiggundu is and may never understand him probably.
The President has also accused some of your commissioners for being agents of the opposition. Do you feel some of your colleagues are compromised?
I don’t know any of them; maybe they could have been years ago but remember we have all come from the movement into multi parties. It would be wrong for me to say such because I haven’t seen those colours in them since we have worked coherently and we continue to do so. If they belonged to such parties in history then it’s okay but now they aren’t. It is only me who has never belonged to any political dispensation.

Do you belong somewhere now?
No.
On the Kampala mayoral elections; what went wrong?
I remember hearing stories because I was in Sironko and that about four polling stations were ballot stuffing.
Certainly, when it became so obvious that there were foreign or advance ballot papers real or unreal, the most logical decision was to call off the elections. We have been thanked by many for taking such a position because the havoc could have been more serious. Unfortunately, it cost the taxpayer a lot more money but it is better to spend but come out peacefully like we did on the March 14 when we finally got a mayor.
Do you think some of your technical officers could have played a role in defeating the spirit of free and fair elections?
Nothing like that has ever been brought to my attention. I meet my staff so often and remind them of the necessity to remain impartial much as they have political animals in them. I don’t have any record of measurable shortfalls from within my staff but I know outsiders always have suspicions.
But you fired 20 staff; was that an indication that things were messed from within the commission?
The moral part I took here was to find out which staff was responsible. We blacklisted all of them and we can never re-engage them immediately or in the future. Secondly, they lost the opportunity to be paid. The third one was to re-train all the officials that stayed as well as their supervisors to equip them with tools to makes use of for the upcoming event. I and surely enough we managed to achieve that. The firing wasn’t an indication of a mess at the commission. It was what we can call an emergency which may occur like in Japan, they have trained scientists but the tsunami hit them.
Having gone through the presidential, parliamentary and LC5 elections, nobody expected what happened. There are challenges which I talked about earlier because you can’t anticipate the true worthiness of a politician. Most times we train our people and politicians do countertraining on the same people. We never train anybody how to ballot stuff. I hear people get ballots stuck under their sleeves. I have never caught one but I have always wanted to get one and slap them then take them to prison. These are adulterations which aren’t in the predictable framework of the commission.
How much money did you spend in all the elections and was it enough?
We haven’t totaled up but it might be around Shs300 billion because we still have more residuals of elections. The total will come later when we finish all the remaining residuals.
Questions have also been raised about how tendering for supply of services was conducted. What was the credibility of the chosen printing firms?
The process was thorough because we advertised internationally and both local and international companies applied but those that met the stringent requirements were selected and we awarded them contracts. We had two international companies - Smith& Ouzman and Calamazu.
We have the most complicated political systems and I told observers that if rolled out correctly we have more than one million elective offices, no other country matches that figure. When you look at our Parliament, we have two lots, LC5 where have five, and the local ones, those are many more. Ours is the most entrenched democracy and it’s quite a volume.
Why did you remain obstinate about cleaning up the voters register even though many thought it was clearly inflated?
There is no perfect election in the world. Our register may have some holes. Once we sealed off and announced that we have finished the cleaning people didn’t stop dying and by the time we went to the polling day there could have been some dead ones on the register. We didn’t have the machinery to remove them because the display had closed. So that could be one of the holes or a blemish on the register. And certainly the duplication process that we so deeply engaged in to remove repetitions couldn’t have given us 100 per cent removal and some stayed.
You can’t believe what we saw in duplication removal because some people tried dressing differently and registered in different villages, some had different combinations of the same name and it wasn’t easy. Remember we have come from very far but I can assure you that we have a very good register and we shall have a much better register come 2016 because we are improving technology.
What happened in Amolatar, for example, was a clear act of electoral fraud. The RDC hijacked the EC list of trained staff and replaced them with his own security operatives. Why did you turn a blind eye to that?
I didn’t realise that. It is news to me because if I had known prior, I would have been able to avert because I don’t speak to any RDCs on such process. I have talked to all RDCs who have been implicated and I have told them to get out of my work. They are civil servants and their obligations don’t lie with the EC. I wish everybody takes their responsible positions seriously and not transgress areas which don’t fit in their mandate and as long as I am still here, no RDC will mess my polls. I don’t joke with elections and the least I expect is an RDC doing so.
Do you think our EC has the best composition in a multi-party system?
On an academic side, if the recruitment is done the way some opinion leaders are saying; they are forgetting that you will be creating a mini parliament where decisions are met by debate and yet here we arrive at our decisions by consensus. Bringing in people who have got triple of double allegiance in any commission would be futile. It is better to select these people with integrity whether they are doctors or whatever profession because when you come here, you must lose your other allegiance.
There are two countries Kenya and Mozambique but you saw the problem which arose in Kenya. In the Mozambique elections, we were present there but I tell you some of their commissioners told us they pray for a time when their commission will not be comprised of party agents. When you have to make a decision, people move out to make telephone calls to consult their parties.
If you ask the Ghana EC boss, he calls such ‘crap’ and he is the most senior and most respected EC boss on the continent. He will tell you not to meddle the electoral administration with political players; but if the law makers in Uganda want to make such moves, I am not here to obstruct them.
You are serving your final term. When is it ending and where next will you go?
My term ends November 17, 2016. And God willing, yes by virtue of mandate I will still be here to conduct the third elections. After that election, I will be in Uganda because I have limitless opportunities in the country and outside. I can assure you I will not fail to find something to do. As per current legal establishment, yes, I will be the chairman EC come 2016. You will be amazed if I tell you how many people have called me and said this was fabulous work I did and the calls are both from within and outside Uganda. By the time of the 2016 polls, some of my haters will have become converted and will like me.

LIBERALIZATION OF THE PENSION SECTOR HAS TO BE DONE WITH A LOT OF CARE

There is the wish to liberalize the pension sector, this wish may be is highly driven by factors like where the Government of Uganda has had liberty to use and misuse the workers’ savings with National Social Security Fund (NSSF) a case in point is the Temangalo saga. It is true that the workers have saved a lot of money with NSSF, but the liberalization of the sector might have the immediate negative impact to NSSF which could send shock\waves which might have long lasting effects to the economy. May be what the law could provide for is for the workers to maintain their balances with NSSF and once the liberalization is done, the workers may be at liberty to shift their new savings effective with the law enactment. This will not negatively impact on NSSF as much as would be the situation when the workers would be at liberty to change to a new organization yet NSSF has investments underway which move could lead to either liquidation of some investments and if not well calculated, its impact could be very terrible.
What would be done is to have greater control over the transactions undertaken by the NSSF. Having savings by NSSF can be very good for the economy if the Government hand does not instead mess up the fund as has been seen in the past.
William Kituuka. Kiwanuka

NSSF OPPOSES PENSION LIBERALISATION
Wednesday, 23rd March, 2011
By Cyprian Musoke
and Joyce Namutebi
THE National Social Security Fund (NSSF) has opposed the total liberalisation of the pensions sector, saying there was still need for a mandatory government retirement benefits scheme for all employees.
In their submissions to Parliament over the Retirement Benefits Authority Bill currently before the House, the NSSF board argued that there was need for sufficient state safeguards which private schemes lack.
The Bill seeks to liberalise the pensions sector by providing for a regulatory authority that will oversee the private players. It obliges employers to pay contributions for their employees into any scheme licensed under the Act.
It also obliges all existing retirement benefit schemes (including NSSF) to apply to the Authority for a license within three months of the coming into force of the Act.
“The fund (NSSF) strongly supports the initiative to establish a regulatory authority for the retirement benefits sector. Our concern is that the Bill removes the fund’s statutory monopoly without adequate provision for a smooth transition to liberalisation.
In our view, this will lead to confusion, anarchy and poses risks for the workers savings,” read a statement signed by board chairman Vincent Ssekono.
It cites the case of a famous business man, Robert Maxwell of England, who fraudulently diverted his company’s pension fund to cover company losses and eventually committed suicide, leaving no recourse for his employees.
“Recently, the Government of Uganda had to intervene after National Insurance Corporation failed to pay retirement benefits owed to Makerere University staff. The presence of a regulator alone does not guarantee the security of people’s savings,” Ssekono said.
They gave the examples of Greenland and the Cooperative Bank that collapsed with savers money despite the presence of Bank of Uganda, a regulator.
“The Bill lacks provisions on regulation of transfer of savings by employees from one scheme to another. This should be explicitly provided for lest the sector runs the risks of a run from one scheme to another,” Ssekono said.
Ssekono argued that the Bill empowers the Authority to revoke the license of a retirement benefits scheme including NSSF, yet the NSSF Act says its statutory mandate to operate cannot be revoked by a regulator.
The Bill, Ssekono argued, should be simultaneously debated with amendments to the NSSF Act to address all cross cutting and transitional issues affecting NSSF.
He expressed concern that NSSF shall be required to compete with other licensed schemes, yet its range of benefits is limited by the NSSF Act to five age, withdrawal, invalidity, emigration and survivors benefit.
Ssekono also complained that they, as key players, were not consulted prior to formulation of and presentation of the Bill to Parliament.

NSSF READY TO GO BUT WANTS FAIR PLAY

Byarugaba says the Fund is readying itself for competition
NSSF is opposing the provisions in a Bill before Parliament expected to open up the pensions sector. NSSF chief Richard Byarugaba gave the reasons to David Mugabe and Stephen Ilungole.
Is NSSF opposed to the liberalisation of the pensions sector?
Not at all. We know that liberalisation brings efficiency. It is also good for the sector and the members. It means there is a body regulating the sector. We are ready. We have a new strategic plan, and we streamlined our operations to be more efficient and customer-driven. We are cutting back our costs to ensure that we have a lean and efficient organisation that will be able to compete in a liberalised sector. We have changed our vision to be a social security provider of choice. We are now looking at the region where the sector has been opened up.
What is your discomfort with the Retirements Benefits Authority Bill in Parliament?
We have an existing law that we are working under. But when the Act is enacted, NSSF shall operate like any scheme. An employer will not be obliged to save with NSSF.
One of the things it does not address is within three months of coming into force; NSSF will be required to compete with other schemes. But the private sector will have access to unlimited products yet we are limited to only five. Therefore, there has to be an amendment in the Act for the Fund to be able to compete on a level- ground.
How would you want the Bill to be?
The new Act will supersede the old law, but does not repeal it.
The NSSF Act should be debated alongside the Bill because the principle of the Bill is regulation. There is no provision for liberalisation.
The whole law needs to be revised to address liberalisation, regulation and reform.
The Bill seeks to allow members use their savings as collateral to get mortgage. Why would you oppose that?
But it doesn’t address the issue of if you borrow using your contributions, the bank cannot attach your collateral if you default. Which bank will allow this? Yet the spirit of social security is that if you get to 55 years and everything fails, you have a fallback position.
Why don’t you advocate a scheme where borrowers use only the equivalent of their savings as collateral instead of outright opposition?
We need to create a product where our customers are able to utilise part of their savings to get mortgage, but this should be in a separate pot. The house is important, but it is not the only human need.
Why are you worried about safety of public funds in private schemes instead of advocating a strong regulator like in the banking sector?
Pension schemes can collapse. We think that there should be a mandatory requirement that should be kept by NSSF.
This is done in Kenya, Tanzania and the UK. We are all for a strong regulation. We are concerned that if the regulator is not strong or if the law makes him weak, we will have problems. We have an interest in this industry.
The conflicting laws mean you cannot have a strong regulator. The regulator is not a panacea. We saw it in the banking sector, and there is no guarantee that more banks will not collapse. We think that there should be a specific Act that handles liberalisation, levelling ground for all.
But having private schemes means efficiencies and better returns on savings?
In an open market; one will be motivated to move where there are high returns. But the rule of high return is high risk. NSSF challenges are corporate governance but the money is always safe and available when the savers need it. The bulk is in government paper; low return but it is there. You will move but the risk of you losing your money is there.
How were banks outsourced to handle your collections?
These accounts with Standard Chartered Bank and other banks have been there for many years. All we have asked them to do now is collect employee schedules and give them to us. This means that the employer will only have to go to the bank to pay his contributions. This is more efficient and customer-friendly. There is nothing that is different.
The initial process was done years ago. Standard Chartered Bank has not been given exclusivity; they were the first to come to the party. We use a total of 12 banks and others are ready to sign in to collect contributions.

UGANDA ASKED TO LIBERALIZE THE PENSION SECTOR
Ultimate Media
The government of Uganda has been called upon to liberalize and put a regulator for the pension sector so as to ensure worker’s savings attract the best returns and are well managed.
The call was made yesterday by the Federation of Uganda Employers. Aloysius Ssemanda, the Chairperson of FUE says employers want the government to open up the pension sector to other players, so that employers and employees can choose who to save their pension with.
Currently, all employers are required by law to save 15percent of their workers’ salary as social security with the National Social Security Fund, which is currently embroiled in controversial purchase of land from a government minister. Some analysts have been blaming the managerial woes facing the NSSF on the fact that it is a statutory monopoly.
Ssemanda says having more than one social security operator will enable employers and workers to choose where to save their pension depending on the interest, transparency and accountability of a particular operator.
Ssemanda says that if the investigations into the NSSF Temangalo land scandal find some government and NSSF officers guilty, they should be prosecuted and heavily punished in order to discourage other officers from mismanaging workers’ savings.
The minister of Finance Planning and Economic Development recently said the government had finalized plans to put a regulator for the pension sector and is looking into requests by the business community to liberalise the pension sector.

BOU GOVERNOR CALLS FOR LIBERALIZATION OF PENSION SECTOR
Ultimate Media
The governor of Bank of Uganda, Tumusime Mutebire has called upon government to liberalize the Ugandan pension sector to ensure efficiency and increase savings for long-term investment.
Currently, all pensions are managed by the National Social Security Fund, which keeps workers benefits on behalf of government.
Speaking at Makerere University during a Bank of Uganda organized public lecture, the governor wondered why it has taken government so long to realize that its better to liberalize the sector as a way to attract investors to run pensions with a business mind.
He says that he does not believe in government doing business but rather creating a favourable environment for private investors to do business.
Tumusiime urged government to do everything possible to create economic activities that will increase household incomes for Ugandans if poverty is to be made history.
He warned Ugandans against producing many children, who they cannot provide for adequately, adding that uncontrolled population growth has contributed to the poverty being experienced in the country.

COMPETITION WILL BRING EFFICIENCY TO THE PENSION SECTOR
Mark Muhumuza
16 August 2010
As Parliament waits to pass the liberalization of the pensions sector, some likely players in the industry have welcomed the reforms. Mark Muhumuza of East African Business Week talked to Evelyn Nkalubo-Muwemba the Acting Commissioner for insurance at Uganda Insurance Commission on what she thought about the reforms in the pension sector.
1. To begin with, What is your view on these reforms?
The pension reforms are long overdue. However, these reforms are good for the country as they will, inter alia, ensure the liberalization of the pension industry, create a legal and regulatory framework for the pension industry, result in the revision of the current legislation to expand social security coverage in Uganda etc.
2. What would the ending of the monopoly mean to the pensions sector in Uganda?
The ending of the monopoly of the National Social Security Fund (NSSF) Uganda and the Public Service pension scheme would mean that there is more competition in the industry which would result in efficiency in management and investment of pension funds.
Additionally, individuals such as part-time workers, the self employed, low-income earners, and workers in small enterprises of less than five permanent employees that are not currently obliged under the NSSF Act of 1985 to contribute to the NSSF scheme would get coverage from other retirement schemes. This would go a long way in increasing social security coverage of individuals
The existing social security system has also created dissatisfaction among members. For instance, there is no provision within the existing social security legal framework for cost-of-living and inflation adjustments that would protect member contributions from the erosion caused by inflation. However, through liberalization that would result in the increase in competition, new pension products such as index-linked products would be introduced on the market and this would go a long way in ensuring that members contributions are not eroded due to inflation.
3. What exactly would be the role of the Insurance companies when the pension sector is liberalized?
Currently, some life insurance companies have Defined Benefit and Defined Contribution schemes (Deposit Administration Schemes). Through these schemes, insurance companies mobilise, hold and invest retirement funds on behalf of individuals and pay either a lump-sum or pension on retirement. We believe the current role would not change after liberalization of the pension sector, but would increase instead.
4. When the reforms are finally put in place, how exactly would the private pension managers work? Will people withdraw what they saved with NSSF already and take it to the Fund Manager of their choice?
The Pension Bill is still being discussed. We believe no concrete position has been reached regarding the above.
5. What opportunity does this hold especially in triggering the growth and development of Uganda?
Reforming the pension sector is vital for competitiveness, growth and development of Uganda. It provides one of the key avenues of increasing access to long term finance through increased savings mobilization. Pension funds stimulate financial markets as member contributions can be used to invest in shares, government bonds, etc
6. What experience do insurance companies have in handling pensions?
Some Life insurance companies have managed Deposit Administration Schemes and Defined Benefit schemes over a considerable number of years. These insurance companies have got qualified and competent personnel to handle retirement funds.
7. What are the likely challenges that may come with these reforms?
We do not envisage any significant challenges with the reforms. However, there could be minor challenges which we believe the Government will easily solve.




BBUMBA TO IGNORE PENSION REFORM IN 2010/11 BUDGET
By Jeff Mbanga, The Observer
May 19, 2010
Uganda
Government has no plans of making concrete steps this year towards the opening up of the pension industry, confining the proponents of the sector’s liberalization to a fifth straight year of agony.
And chances that any such intervention will be done in the year 2011 are increasingly looking slim, The Observer can reveal. A Paper that lays the basis for next month’s National Budget reading hardly mentions any significant plans by government to open up the pension sector this year. Instead, the National Budget Framework Paper 2010, points out that a new regulator might be put in place by 2011.
“Government is advancing reforms in the pension sector,” notes the National Budget Framework Paper, which is prepared by the Ministry of Finance. “The Retirement Benefits Authorities Bill was approved by Cabinet in December 2009, together with the policy on liberalizing the sector which will allow private pension providers to compete with the National Social Security Fund (NSSF),” it adds.
“It is expected that the Bill will be submitted to Parliament, and the new regulator put in place by 2011. Government shall be undertaking actuarial evaluations of the large pension schemes currently operating in Uganda to determine the financial viability of the sector as a whole,” according to the NBFP.
That is just about government’s future plans regarding the liberalization of the pension sector, which is bound to leave market players with more questions over a more credible timetable. A liberalized pension sector is seen as one of the best solutions for a deeper financial market, which tends to attract foreign capital, and also act as a source for credit.
Also, in Uganda’s case, a liberalized pension market is seen as the only solution of applying pressure on NSSF to offer its clients a good return on their savings. But calls for opening up the pension industry over the last five years are yet to bear any fruit. In what is increasingly looking like a cat and mouse game, Government has over the last few years raised hope among financial market players over the imminent liberalization of the sector, but fallen short of putting up concrete measures to fulfill its promises.
For example, in June 2007, Ezra Suruma, then Minister of Finance, talked of how Uganda needed a strong pension system. He also said, without being elaborating that Government would turn NSSF into a pension fund. Nothing substantial happened.
In June 2008, Suruma said a regulatory authority for the pension sector, which was supposed to lay the foundation for a liberalized market, would be put in place in December that year. December came and passed.
Early last year, Syda Bbumba replaced Suruma as Minister of Finance, with a strong belief among financial market players that she would succeed where her predecessor had failed. In June 2009, Bbumba completely left out any concrete plans for the liberalization of the sector, dashing much of the faith the market had in her.
While delivering her keynote speech at the Kikonyogo Capital Markets Awards two weeks ago, Arunma Oteh, the Director General of the Nigeria Securities and Exchange Commission, called on government to open up the pension sector “as soon as possible” as that would create an environment for more money in the sector.
She said that “the development of a strong capital market is imperative because theoretical and empirical literature have shown that there is a strong, positive correlation between capital market development and economic growth.”
However, there are arguments that 2011 won’t even be the year that the pension industry could be liberalized despite Cabinet pronouncing itself on the Bill.
There are fears within the industry that the election campaigns, which climax in February 2011, will distract economic reforms such as the liberalization of the pension industry.
Others expect government to take a break after a grueling election campaign. Also, Nicholas Malaki, the Country Manager of PineBridge Investments East Africa Country Manager, offers an interesting argument as to why the market is in for a long wait.
“There is always a time lag when the Bill is presented in Parliament and when it becomes operational.” Pointing to the Kenyan example where the Retirement Benefits Bill was passed in 1997, but became operational around 2001, Malaki said that the Minister has to gazette rules and regulations for the sector, put in place trained personnel, among others, all of which “take some time.”
For now, private companies continue to offer in-house pension schemes, which are not clearly regulated. The fate of these pension schemes in the event of the company’s collapse remains unclear.
But also, the delay in opening up the pension sector means NSSF will not feel any pressure to offer its clients a good return on investment. Currently NSSF, which manages more than Shs 1 trillion, or $465 million, pays an annual interest of 3% on workers’ savings, which is below the inflation rate of about 7%.
While it will remain compulsory for employers and employees to save with NSSF, market players say that the liberalization of the pension sector is expected to put pressure on NSSF to increase its interest payments. That day, however, is not in the foreseeable future.


PENSION SECTOR TO BE LIBERALIZED
By Martin Luther Oketch, The Daily Monitor
September 18, 2008
Uganda
The Minister of Finance, Planning and Economic Development has said that Uganda will have a pension regulator as well as having the pension sector liberalised next year.
Having a regulator of the pension sector in place will lead to better regulation of the sector while liberlising the pension sector will provide the avenue for the required long-term funds to develop capital markets in Uganda.
Private sector analysts also argue that if liberalisation of the sector is achieved, it will encourage a domestic savings culture thus enhance local investments. During question time after the signing of a credit agreement with the World Bank on September 15, Finance Minister Dr Ezra Suruma said that the Pension Regulatory Framework has been approved by cabinet paving way for the country to have a pension regulator.
Dr Suruma said that the Pension Sector Parliamentary Council consisting of all the stakeholders in the pension sector has completed drafting the pension reform bill. “This bill is going to be presented to the stakeholders to go through it again. We then hope that we shall be able to have a Pension Regulator in place early next year,” he said. Dr Suruma also disclosed that the liberalisation of the pension sector would take place mid next year.
One of the foremost reasons why Uganda’s financial sector is still shallow is that pension sector reform programmes in Uganda have taken long, while the process of the sector getting sector liberalised have also been very sluggish prompting a cross section of the private sector to think that the government is not doing enough to have the sector openup for better regulation and competition for better investment returns.
However, Dr Suruma said that pension reform liberalisation process is quite complicated and that is the reason why it has taken has government a long time to liberlise the sector.
Dr Suruma said: “We have made policy regarding pension reforms in Uganda. The pension sector will be reformed and liberalised.”
Government plans on providing sufficient funding to clear pension arrears and transform the current system into a contributory scheme. The medium and long term objectives of the reforms is for the pension sector to protect funds of pensioners and retirees, while at the same time utilising these resources for mobilising domestic investment capital.
These developments come at a time when the country’s National Social Security Fund is mired in a number of questionable deals that have cast doubts of prudent corporate governance on the management of the fund.
In a telephone interview with Daily Monitor the Chief Executive Officer of Uganda Securities Exchange, Mr Simon Rutega described the Minister of Finance’s decision as a welcome initiative that the private sector have been looking forward to because it will lead to better regulation of the sector.
Mr Rutega said that it would be critical for the pension regulator to ensure that there are good regulatory conditions for different pension funds in the hands of fund managers; some thing that is still lacking in Uganda.
“Among the positive impacts of having a liberalised pension sector is the fact that it will give people opportunities to invest their savings in the stock exchange. We shall have more investors/contributors in our capital markets, because there will be retirement funds in the hands of the public,” he said.

BUYING FIGHTER PLANES WILL NOT GET POVERTY OUT OF UGANDA

UGANDA GOVERNMENT TAKES SHS2BN FOR JET FIGHTERS

By Yasiin Mugerwa

Posted Sunday, March 27 2011 at 00:00
The government took $740 million (about Shs1.7 trillion) worth of taxpayers’ money from Bank of Uganda to buy fighter jets and other military hardware from an unknown country.
The money, according to the ruling party MPs who attended the Thursday night NRM Caucus meeting at State House Entebbe, where President Museveni revealed the transaction, was reportedly withdrawn during elections and without the mandatory parliamentary approval.
But the meeting that ended at about 2am sought among others to persuade the NRM MPs to grant a retrospective authority for government to spend the money. “The President told us that the money was used to buy fighter jets and other military hardware he didn’t name,” a member, who requested not to be named because the President strongly cautioned the lawmakers against leaking the information to the press, said. “He said he wanted us to approve a retrospective supplementary of $740m obtained from the central bank.”
According to NRM MPs, who attended the meeting, the President was unwilling to offer substantial details to the deal but asked the NRM MPs to approve the unprecedented supplementary when it comes to parliament in the due course. “We were ambushed,” another member said. “We didn’t know the subject to discuss. The President had documents and kept referring to them, saying the transaction was under classified expenditure. But some members like Felix Okot-Ogongo (Dokolo) told the President that the shilling was depreciating against the dollar because Bank of Uganda doesn’t have money.”
BoU communication director Eriot Mweya was not aware of the transaction but said if government agencies want to buy anything in foreign currency, they use foreign reserves in Bank of Uganda to buy dollars. “They bring local currency to get dollars and this doesn’t mean government got money from Bank of Uganda,” Mr Mweya said. “I suspect that’s what might have happed in that case. In fact, our foreign reserves stand at $2.5 billion worth of five months of imports yet the required foreign reserves should take us for three months.”
MPs also asked the President to explain whether there was any precedent where Parliament has ever approved a supplementary budget of such magnitude. Others demanded for accountability of the recently Shs600b approved in the middle of the general elections. The opposition has since accused the ruling part of using the supplementary to bribe voters in the recently concluded elections.
In April last year, Daily Monitor reported that the government had denied reports in a leading Russian business daily, Vedomotsi, that it had signed a contract with Moscow to buy the Su-30-MK2s fighter jets at Shs654b. However, the following day, the army spokesman, Lt. Col. Felix Kulayigye, said the army would buy six fighter jets from a Russian arms exporter if the government gets the money. Earlier reports indicated that Rosoboronexport, the Russian state arms exporter, would also supply 16 similar jets to Algeria. But Lt. Col. Kulayigye, who had denied the reports, made a U-turn, saying purchases would go ahead because they need the sophisticated Russian-made jet fighters to strengthen the country’s national air defence capability.
“The President told us that the country faces terrorism threats and therefore the government needed to acquire the jets and other equipment to beef up the capacity of the UPDF,” another member said, adding: “Some of us were not convinced because we had just approved Shs600b and now another Shs1.7 trillion. This is a lot of money but we told them to discuss the matter in cabinet and inform us later on the way forward.” Lt. Col. Kulayigye last evening said: “I didn’t attend that meeting at State House and therefore cannot comment on that matter.”
While the ruling party has the numbers in Parliament to push through the supplementary budget, questions emerged last evening on what might have prompted such colossal sums of expenditure at a time when the country is facing economic stress as a result of inflationary pressures. It’s also not clear why this money was never included in the 2010/11 budget.
However, other MPs who attended the meeting said the money could have been spent on the general elections even though the President insists that it was for boosting national security. If this supplementary comes to Parliament, it’s likely to pass through the Budget Committee without huddles since it has been treated as a classified expenditure.
Finance Minister Syda Bbumba and Secretary to the Treasury Chris Kassami were not available comment.

Reaction to the move
Shadow Finance Minister Okello Oduman:
“Ugandans must tighten their belts. The Shs1.7 trillion meant for productive areas, stabilising the depreciation of the shilling and rising inflation in the country is going to buy military hardware in exchange for a service that doesn’t add any direct value to the economy. This is what we call non-quid pro quo movement of money. It’s like injecting money in the population in exchange for nothing.”
Opposition Chief Whip Kassiano Wadri:
“Which country is President Museveni going to attack? We want roads, drugs in hospitals, quality education, better service delivery and not fighter jets. They are yet to account for the Shs602 billion they took from the treasury recently and now they want another Shs1.7 trillion, this is going too far. We cannot match the NRM numbers in the House but as opposition we are going to express our displeasure when this supplementary comes to Parliament.”
Public Accounts Committee Chairman Nandala Mafabi:
“We are talking about Shs1.7 trillion, which is equivalent to the infrastructure and health budget combined. This is money going to non-productive areas and without accountability. It means that the government has lost focus. They don’t have any idea of the country’s priorities. We expect to see budget performance reports and not people asking for more money to buy fighter jets. The government has become a bottomless pit yet our people are getting poorer. There is no value for money and the economy is feeling the pinch because of this reckless spending”
John Odit (Erute South):
“If NRM MPs agree to pass this money, this is going to be one of the greatest plunders of the 8th Parliament. I am a member of the budget committee and I know the fact that Parliament has gone beyond the limit to offer money to government. This is money they used to finance elections and fighting the opposition. The last supplementary budget we approved was 7 per cent yet the accepted percentage is only 3 per cent. We have to block this money in public interest otherwise; we are in serious trouble as a country.”
Franka Judith Akello (Agago Woman MP):
“What’s the urgency to spend $740 million (Shs1.7 trillion)? How come this money was not put in the budget? Let them wait and put the money in the next budget if they want to buy these fighter jets. We don’t have the money yet we continue to incur expenditures as if there is no tomorrow. I request my colleagues in the NRM to think about the taxpayers and block this request. We are still a poor country and cannot afford such a magnitude.”

NAMUTAMBA DEM SCHOOL HAS MADE 75 YEARS

KING’S COLLEGE BUDO OG PASSES ON

Mirica Mukasa succumbed to death Saturday, 19, 2011. At 8.00am Mirica breathed her last. Born in 1970, forty one years after, God decided to change Mirica’s address. Mirica had her primary education at Buganda Road, she joined King’s College Budo and thereafter got a Diploma in Art from Nkumba College. As a child, Mirica was brought up at Bweya Children’s Home Orphanage under the care of Mr and Mrs Christopher Mukasa. At Bweya many other orphaned children were concerned by the way Mirica seemed favoured. However, Mr Mukasa says that Mirica was born a pre-mature and the special treatment she got to live continued on through her days at the Children’s Home. She leaves two sons; one in senior four and the other in senior three.
May the Almighty God who gave Mirica chance to live give her eternal peace



William Kituuka Kiwanuka

OPEN LETTER TO THE UNITED NATIONS SECRETARY GENERAL

RE. WHAT CAN THE COUNTRIES DO TO OFFICIALLY GET THE UN BACKING TO REMOVE A LEADER WHO IS A LIABILITY?
The UN Secretary General Sir,
Many of us in impoverished 3rd world countries look on helplessly as leaders dominate us and they become the biggest liability for the future of our people and our countries. The purpose of this communication is to request your organization to come up open regarding how a country can qualify to be assisted to get her leader out of office when such a leader becomes a real liability and the people end up helpless in dealing with the situation.
I will be very grateful to learn from the UN when such measures are clearly stipulated so that we get to know how we can proceed to get help to have leaders who become liabilities out of office with the UN assistance.
Thank you.
William Kituuka Kiwanuka
UGANDA.

UGANDA NEEDS DEMOCRACY NOT JET FIGHTERS WORTH $740M

Countries like Uganda will remain underdeveloped as long as the leaders divert would be development resources to none productive areas. Though President Museveni managed to secure a come back after the 2011 Presidential elections, in the eyes of many, his leadership has done badly mostly because of prioritizing the army. Most of the budgets of the NRM have had a loin's share for the army, and this is one reason why hospitals are in the shape they are, schools bad, and youth unemployment at shameful levels. We are seeing what is happening in Libya. The wise thing for a leader is to do pro- people things, but that wish to remain in power through use of the army is becoming obsolete and a wrong theory where the real power of the people gets to prevail.
William Kituuka Kiwanuka
Army to acquire new jet fighters
Friday, 25th March, 2011

By Mary Karugaba
THE Government is lobbying MPs to approve $740m (about sh1.7 trillion) to purchase new fighter planes and tanks.
Sources that attended a closed door meeting between President Museveni and the NRM caucus at State House Entebbe disclosed that officials from the Ministry of Defence said so far $446m (about sh1trillion) had already been paid.
The members were also told the equipment would be delivered in installments. The officials, however, did not disclose the country where the equipment would be purchased from.
The members were told the first consignment of four new planes was expected in in June and the rest will be delivered before the end of the year.
Sources also said the money was borrowed from the Central Bank reserves in dollars, a matter many suspected to have been the cause of the weak shilling.
Sources said the President briefed members on the Government’s military investments that involved purchase of jets and tanks. The President reportedly briefed the members on how the army had evolved since 1986.
“When we took over Kampala, we had only 20,000 military officers. However others were integrated and the number increased to 100,000. But towards 2000, we had retrenchment and the number reduced to 40,000,” the President reportedly explained.
“The army was ill-equipped so we also embarked on professionalising it, a process that involved buying more equipment,” the President added. The meeting started at 11:00pm and ended at about 2:00am.
Sources said the President also informed members that most of the current equipment was junk and needed overhaul. “In that process, we bought new jets. Three are okay and one got problems while in Garamba,” the source quoted the President.
The President reportedly explained that the new purchase was meant to protect the country from insecurity in the region and possible attacks.
“He said we needed to prepare for any eventuality,” the source said.
“The President was mobilising us to support the retrospective authority request when it is presented to Parliament by Finance minister Syda Bbumba,” the source added.
According to the law, any Government investment or purchase should be approved by Parliament but in circumstances when the purchase is made, a retrospective authority should be sought.
Members reportedly put the Attorney General to task to explain whether the drawback was a loan. MPs also asked the President whether this was the first time the Government was making such a move.
During the meeting, the issue reportedly became controversial and members said it should first be handled by a committee of senior Cabinet ministers before it is brought to the public.
“The members’ views were that military expenditure should be classified. They agreed that the matter was complicated and advised that responsible ministries should first handle the matter and call us later,” the source said.
When contacted, the Government Chief Whip, Daudi Migereko, said the meeting discussed budget matters. Asked about the military jet issue, Migereko said, “Strategic issues in the budget were discussed. The Cabinet will continue with some of the issues today.”